Distell says weak demand in January to March

South African drinks maker Distell Group suffered slack demand in the January-March quarter, its head said on Thursday, as consumers in Africa’s biggest economy struggle with unemployment and debt.

But South Africa’s top wine and spirits maker is betting the soccer World Cup will give it a much-needed boost, Managing Director Jan Scannell told Reuters in a telephone interview.

“Consumers are under pressure, we have seen no signs of a recovery (since January)…. It’s extremely tough,” Scannell said.

Distell, whose brands include Nederburg wines and Amarula liqueur, has struggled to increase profits as cost-conscious consumers have opted for lower-priced brands.

South Africa last year exited its first recession in nearly two decades, but household finances remain under pressure.

The Cape Town-based company expects demand during the World Cup to be on par with the Christmas period, typically its best season for sales.


more on af.reuters.com